156-Applying Compound Interest To Your Goals: Lessons Learned From the Magic Doubling Penny
Radical Personal Finance
Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP
4.2 • 1.9K Ratings
🗓️ 24 February 2015
⏱️ 59 minutes
🧾️ Download transcript
Summary
Most of us have heard the example of the magic penny that doubles every day in value for a month. But, have you sat down and looked at that example to really understand what lessons you can apply to your own life?
Today, I share with you 5 lessons I've learned from that example:
1. Rate of return matters
2. Time matters
3. In the beginning, it's easy to spend. That's what most people do.
4. In the beginning, the amount you save matters more than the interest rate.
5. In the end, the interest rate matters more than the amount you save.
Enjoy the show!
Joshua
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| 0:47.0 | Today on the show we dig into compound interest and |
| 0:51.0 | We go through the lessons that we can learn from the magic penny. |
| 0:58.0 | You've heard the example, right? The magic penny that doubles in value? |
| 1:02.0 | What are the actual lessons of that? Welcome to the Radical Personal Finance Podcast. My name is Joshua Sheets and I'm your host and today is Monday, February 23, 2015. |
| 1:29.0 | If I offer you two choices, one is a million dollars cash today or the other is a magic penny |
| 1:35.8 | that doubles in value every day for a month. Which of those would you choose and |
| 1:41.8 | why? |
| 1:43.0 | Now I would guess that for most of you that's not the first time you've ever |
| 1:55.3 | been asked that question. People listen to this show generally are not new on. They |
| 1:59.7 | didn't just fall off the cabbage truck or the turnip truck or this isn't your first rodeo or whatever |
| 2:03.7 | I don't know what you call that in language whatever saying you want to apply from the south so |
| 2:09.5 | we talk about turnip trucks and cabbage trucks and rodeos I don't know what you New Yorkers talk about. about |
| 2:13.0 | new yorkers talk about. |
... |
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